When to use which Creative Financing?

[Natalie R.]

Seasoned Investors, when & why would you use each of these? I’m trying to get the hang of creative financing. A lot of these are very similar. When would you use one & not the other?

[Steve Vaughan]

Originally posted by @Natalie R.:

Seasoned Investors, when & why would you use each of these? I’m trying to get the hang of creative financing. A lot of these are very similar. When would you use one & not the other?

By each of these I assume you mean seller-financing,  lease options and sub2?  None work really if an agent is involved. Need off-market houses.

My SF deals have all been off-market tired landlords that are older and own free and clear.  They like the monthly but not the headaches.  WA has a particularly juicy Real Estate Contract that lets them forfeit easily if you default for 90 days. They don't have to foreclose. 

Lease Options work best for me on pretty houses with high mortgage balances.  Low equity.  Job transfers or illness forcing them to be a sudden seller.  Don't do a bunch of work on a house you just have the right to buy later.

Sub2 can be uglier and have more equity. Ok to work on what you own. Higher equity can be wrapped.

What specific strategies are you asking about?